Current SCSM environment is SCSM 2012 R2 (SCSM Management Server and SCSM Data Warehouse)?
Regarding the instructions from your link: https://video2.skills-academy.com/en-us/system-center/scsm/set-up-lab-with-production-data?view=sc-sm-1711
The new lab environment should be the same version of the current SCSM environment.
After the lab environment is up and running without issues you can follow the upgrade process for SCSM 2012R2 upgrade to SCSM 2016: https://video2.skills-academy.com/en-us/system-center/scsm/upgrade-environment?view=sc-sm-2016
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Regards
Andreas Baumgarten